<strong>2008</strong> Howe Resource Reserve Estimate Revised mineral resources in the Measured + Indicated categories total 94 million tonnes with an average gold grade of 0.39g/tonne (1.18 million ounces). Inferred Resources total 4.5 million tonnes with an average gold grade of 0.38g/tonne (55,000 ounces). A cut-off grade of 0.15g/tonne Au was used to determine which blocks were to be included in the mineral resource. Refer to the following table. <strong>The</strong> 0.15 g/tonne Au cut-off was deemed to have economic potential for the purposes of open pit economic modeling. This cut-off is the same as the 0.15 g/tonne Au constraining interpretation cut-off in that it considers the possible overall operational cut-off grade. <strong>The</strong> 0.15 g/t Au cut-off was used to indicate which mineralization had the expectation of being economically viable at the internal operational cut-off. . ii
Castillo Remaining Mineral Resource Estimate as of October 2007 Measured Indicated Meas + Ind Inferred Cut-off Tonnes Avg Tonnes Avg Tonnes Avg Tonnes Avg Grade Above Grade Above Grade Above Grade Above Grade (g/t) Cut-off (g/t) Ounces Cut-off (g/t) Ounces Cut-off (g/t) Ounces Cut-off (g/t) Ounces 0.00 102,000,000 0.31 1,011,840 97,000,000 0.13 403,520 199,000,000 0.22 1,415,360 18,000,000 0.13 74,880 0.05 93,000,000 0.33 982,080 67,000,000 0.18 385,920 160,000,000 0.27 1,368,000 10,000,000 0.23 73,600 0.10 80,000,000 0.37 947,200 45,000,000 0.23 331,200 125,000,000 0.32 1,278,400 6,200,000 0.31 61,504 0.15 65,400,000 0.<strong>43</strong> 899,904 28,900,000 0.30 277,440 94,300,000 0.39 1,177,344 4,500,000 0.38 54,720 0.20 52,300,000 0.50 836,800 18,300,000 0.37 216,672 70,600,000 0.46 1,053,472 3,100,000 0.48 47,616 0.25 41,900,000 0.57 764,256 11,800,000 0.45 169,920 53,700,000 0.54 934,176 2,300,000 0.58 42,688 0.30 33,600,000 0.64 688,128 8,400,000 0.53 142,464 42,000,000 0.62 830,592 1,900,000 0.63 38,304 0.35 27,100,000 0.71 615,712 6,100,000 0.61 119,072 33,200,000 0.69 734,784 1,800,000 0.65 37,440 0.40 22,200,000 0.79 561,216 4,700,000 0.68 102,272 26,900,000 0.77 663,488 1,500,000 0.71 34,080 0.45 18,300,000 0.87 509,472 3,900,000 0.74 92,352 22,200,000 0.85 601,824 1,300,000 0.74 30,784 0.50 15,200,000 0.95 462,080 3,200,000 0.79 80,896 18,400,000 0.92 542,976 1,000,000 0.83 26,560 0.60 11,000,000 1.11 390,720 2,300,000 0.89 65,504 13,300,000 1.07 456,224 840,000 0.88 23,654 0.70 8,180,000 1.26 329,818 1,650,000 0.98 51,744 9,830,000 1.21 381,562 640,000 0.95 19,456 0.80 6,270,000 1.42 284,909 1,150,000 1.09 40,112 7,420,000 1.37 325,021 580,000 0.97 18,003 0.90 4,980,000 1.56 248,602 630,000 1.29 26,006 5,610,000 1.53 274,608 560,000 0.98 17,562 1.00 4,040,000 1.71 221,069 490,000 1.39 21,795 4,530,000 1.67 242,864 220,000 1.07 7,533 * Blocks under 0.15 g/tonne are not considered to be "Resources" and are included for information purposes only. Notes: • Base case is 0.15g/tonne Au; • Metal price used US$625/oz Au; • Assumed metal recovery based on previous metallurgical studies is 68% • Not all tonnage will be recovered in mining, nor will all metal be recovered in milling and processing iii
- Page 1 and 2: TECHNICAL REPORT ON THE EL CASTILLO
- Page 3: SUMMARY Introduction At the request
- Page 7 and 8: Undiluted Reserves at $550 per Ounc
- Page 9 and 10: epresent an incremental increase in
- Page 11 and 12: TABLE OF CONTENTS 1.0 INTRODUCTION
- Page 13 and 14: Table 4. Driving distances from Dur
- Page 15 and 16: Castle Gold has accepted that the q
- Page 17 and 18: 2.0 PROPERTY DESCRIPTION, LOCATION,
- Page 19 and 20: Figure 2. Map showing mining conces
- Page 21 and 22: 2.1.2.3 Property Taxes The property
- Page 23 and 24: Table 5. Maximum precipitation in a
- Page 25 and 26: 3.0 HISTORY The El Castillo Project
- Page 27 and 28: commonly reach elevations of 2,500
- Page 29 and 30: Figure 4. Cross-section through the
- Page 31 and 32: At El Castillo, the presence of cha
- Page 33 and 34: Toward the center of the mineralize
- Page 35 and 36: 7.0 EXPLORATION In 2006, Castle Gol
- Page 37 and 38: 9.0 SAMPLING METHOD AND APPROACH Th
- Page 39 and 40: 11.0 DATA VERIFICATION 11.1 INTRODU
- Page 41 and 42: Morgain Minerals Inc. El Cairo Gold
- Page 43 and 44: 13.0 MINERAL PROCESSING AND METALLU
- Page 45 and 46: Table 9. Castle Gold test heap leac
- Page 47 and 48: material is relatively consistent a
- Page 49 and 50: Plate 6. View of the El Castillo si
- Page 51 and 52: 14.2.1 Methods A shift of -500,000
- Page 53 and 54: 14.2.4 Pit Optimization Parameters
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Undiluted Reserves at $600 per Ounc
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Table 13. Comparison of Howe 2003 a
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15.2.2 Change of Land Use The Compa
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16.2.1 Capital and Operating Cost E
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Table 15. Operating Cost Summary (U
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will be operating the mine indirect
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Table 17. Sensitivity Analysis - Gr
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16.2.2 Economic Evaluation The Base
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Table 23. US$ - Mexican Peso Exchan
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• Castle Gold should complete geo
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Panteleyev, A., 1996, Epithermal Au
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9. To the best of my knowledge, inf
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CERTIFICATE OF AUTHOR dated July 31
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Appendix A Pit Optimization Level P
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